Traders Worldwide Sue Binance Over Losses During Service Crash In May

Binance faces a lawsuit over the trading service crash that happened during the May crypto market downturn resulting in major losses for traders. 

What Happened: According to a Wall Street Journal report, a group of about 700 traders is working with a lawyer in France to take action against the exchange.

Another group in Italy is suing Binance over the same issue as its lawyers sent a letter to 11 Binance addresses they could find in Europe and an email to the help desk.

A major issue for those groups is that Binance has no headquarters, making it difficult to figure out under which jurisdiction the lawsuit should be filed.

The news also follows late June reports that Binance's United Kingdom subsidiary Binance Markets Limited was prohibited from conducting any regulated activity in the country by local regulator Financial Markets Authority, with local banks about to stop payments related to the exchange.

At the same time, Japanese and Cayman Islands authorities said that Binance doesn’t have licenses to operate in those jurisdictions.

Back in May, Binance Executive Aaron Gong purportedly apologized and promised that the exchange's staff would reach out to those affected by the crash in later-deleted tweets.

Binance’s terms and conditions require disputes against the firm to be filed with the Hong Kong International Arbitration Center, which would cost a lot of money to the plaintiffs.